BankruptcyRSS

  • August 17, 2007

    Werner's Trustee Throws Up Red Flag

    The U.S. Trustee has objected to bankrupt Werner Holding Co.'s disclosure statement and liquidation plan, saying it does not properly address the payment of administrative claims.

  • August 17, 2007

    Refco Auditor New Target In TH Lee's Spate Of Suits

    Thomas H. Lee Partners LP dealt out another lawsuit Thursday in the wake of Refco Inc.'s collapse, this time suing Refco's former auditor Grant Thornton LLP for allegedly participating in the fraud that bankrupted the company.

  • August 17, 2007

    Judge Denies Bank's Bid To Seize AHM Loans

    A bankruptcy judge has refused a bid by Credit Suisse First Boston to immediately wrest control of more than $46 million in loans from American Home Mortgage Investment Corp, saying the bank would have to wait its turn.

  • August 16, 2007

    New Century Staves Off Software Copyright Suit

    The judge in New Century Holdings Inc.'s bankruptcy has shot down the move Positive Software Solutions Inc. had made to lift the automatic stay in its efforts to resume its multibillion-dollar suit against the subprime lender over the copyrights to a loan database program.

  • August 16, 2007

    EU To Probe Credit Rating Agencies

    The subprime mortgage crisis has prompted a European Commission investigation into credit rating agencies, with regulators pledging to look into the agencies' slow response to the situation.

  • August 16, 2007

    Settlement Could Bankrupt Sharper Image: Experts

    Plaintiffs who have sued Sharper Image Corp. over claims that the retailer's “Ionic Breeze” air purifiers caused adverse health effects may shove the company into bankruptcy if it is forced to shell out hundreds of millions of dollars to settle the product liability action, financial experts were reportedly set to testify at a hearing Thursday.

  • August 16, 2007

    Unions Ask Court To Freeze Dana Appeal

    Optimistic that the unions and Dana will stick to their new pact, attorneys for two labor organizations have asked a judge to temporarily suspend an earlier appeal, triggered by the bankruptcy court's decision to sign off on the supplier's bid to modify its employment agreements.

  • August 16, 2007

    Morgan Stanley, American Home Battle Over Loans

    Morgan Stanley has pressed American Home Mortgage Investment Corp. to hand over mortgage loans valued at more than $519 million, claiming that the bankrupt company no longer has the right to service the loans.

  • August 16, 2007

    Washington Mutual Sues Alliance For Loan Payments

    Washington Mutual Inc. has filed an adversary case against Alliance Bancorp Inc., claiming that the bankrupt mortage lender has failed to turn over funds related to a loan servicing agreement between the two companies.

  • August 16, 2007

    Court Upholds Ex-Impath President's Conviction

    An appellate court has upheld the conviction of the former president of Impath Inc., who federal prosecutors are still hoping to jail for life on alleged securities fraud charges that led to the cancer company's bankruptcy and liquidation.

  • August 16, 2007

    Judge OKs Dura Backstop Agreement

    A bankruptcy judge has approved a controversial backstop rights purchase agreement for bankrupt Dura Automotive Systems Inc., a move that inches the company closer to its goal of emerging from bankruptcy protection by the end of the year.

  • August 16, 2007

    ConAgra Loses Appeal Over Furr's Avoidance Action

    Con Agra Foods Inc. will have to give liquidated supermarket chain Furr's Supermarkets Inc. over $2.3 million of transfers and pay prejudgment interests on the recovered amounts, after bankruptcy judges tossed out its appeal on Wednesday.

  • August 15, 2007

    Turnaround Exec Resigns From Interstate Bakeries

    Turnaround executive John K. Suckow has stepped down from his position with bankrupt baked goods company Interstate Bakeries Corp. The maker of the Hostess Twinkie said that Suckow has resigned as chief restructuring officer and executive vice president.

  • August 15, 2007

    PT Holdings Set To Emerge From Ch. 11

    A federal court in Seattle has signed off on PT Holdings Inc.'s plan of reorganization, clearing the way for the company and subsidiaries Port Townsend Paper Corp. and PTPC Packaging Co. Inc. to emerge from Chapter 11 after about seven months in bankruptcy protection.

  • August 15, 2007

    Well-Timed Trade By AHM's CEO Raises Eyebrows

    The chief of American Home Mortgage Investment Corp. faces scrutiny over the auspicious sale of his stake in the beleaguered lender, with the timing raising speculation that he traded on insider knowledge.

  • August 15, 2007

    Bayou To Announce Second Round of Settlements

    Bayou Group LLP has agreed to a second round of settlements with investors that allegedly pulled their money out of the bankrupt hedge fund before it collapsed, exposing what Bayou's attorneys have termed a “fraudulent Ponzi scheme.”

  • August 15, 2007

    Jury Orders BDO Seidman To Cough Up $521M

    Accounting firm BDO Seidman LLP must pay a total of $521 million in damages to a Portuguese bank after it was found guilty of failing to unearth a fraud that led to the collapse of a Florida financial services company.

  • August 14, 2007

    BDO Seidman To Pay $170M For Overlooked Fraud

    A Florida jury has ruled that accounting firm BDO Seidman LLP must pay $170 million in damages for its gross negligence in failing to spot a fraud that forced a Miami financial services company into bankruptcy.

  • August 14, 2007

    Bally Courts Approval To Alter Chapter 11 Plan

    Two weeks into the gym giant's bankruptcy proceedings, Bally Total Fitness Holding Corp. is already seeking to revamp its prepackaged Chapter 11 plan, vowing to offer creditors a “superior” restructuring proposal.

  • August 15, 2007

    Calpine Wants To Back New Power Plant

    Bankrupt energy company Calpine Corp. has asked a bankruptcy judge to approve a pre-bankruptcy plan it made with affiliate Freeport Energy Center LP to be the guarantor on a project to construct a new power plant.